An employers' organization or employers' association is a collective organization of manufacturers, retailers, or other employers of wage labor. Employers' organizations seek to coordinate the behavior of their member companies in matters of mutual interest, such as during negotiations with trade unions or government bodies. Employers' organizations operate like trade unions and promote the economic and social interests of its member organizations.
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👉 Employers' organization in the context of Tripartism
Tripartism is an economic system of neo-corporatism based on a mixed economy and tripartite contracts between employers' organizations, trade unions, and the government of a country. Each is to act as a social partner to create economic policy through cooperation, consultation, negotiation, and compromise. In Tripartism, the government has a large role in the economy and engages in negotiations between labour unions and business interest groups to establish economic policy.
Tripartism became a popular form of economic policy during the economic crisis of the 1930s. Tripartism was supported by a number of different political movements at this time, including: Catholic social teaching, fascism, and democratic political movements. Tripartism is a prominent economic policy in Europe, particularly where Christian democratic parties influenced by Catholic social teaching have held power; it is a core part of the Nordic model seen in the economic systems of Scandinavia and the Benelux that were put in place by social democratic governments. Another example is the national income policy agreement in Finland. Globally, tripartite institutions, such as Ghana's Tripartite Committee and Singapore's National Trade Union Congress, have been implemented into economic systems. Tripartite agreements are an important component in practical labour law, since they cover not only wages but also issues such as policies on benefits, holiday, work hours, and worker safety.
In this Dossier
Employers' organization in the context of List of International Labour Organization Conventions
The list of International Labour Organization Conventions contains 191 codifications of worldwide labour standards. International Labour Organization (ILO) Conventions are developed through tripartite negotiations between member state representatives from trade unions, employers' organisations and governments, and adopted by the annual International Labour Conference (ILC). Member state governments subsequently ratify Conventions and incorporate their provisions into national legislation.
The first Convention was adopted in 1919 and covers hours of work, the most recent Convention, adopted in 2019, covers violence and harassment in the world of work. The Declaration on Fundamental Principles and Rights at Work, adopted by the member states in 1998, identified eight fundamental Conventions as binding on all members; four prohibit forced labour and child labour, and four provide rights to organize, to collectively bargain, to equal pay and to freedom from discrimination at work. There are also important Recommendations, which are widely adopted as standards, but do not have the same binding effect as Conventions, such as the Employment Relationship Recommendation, 2006 (No. 198) that ensures universal protection of workers for rights, and requires clear identification in national law for the employer, state or other party responsible for the right.
Employers' organization in the context of Collective bargaining
Collective bargaining is a process of negotiation between employers and a group of employees aimed at agreements to regulate working salaries, working conditions, benefits, and other aspects of workers' compensation and rights for workers. The interests of the employees are commonly presented by representatives of a trade union to which the employees belong. A collective agreement reached by these negotiations functions as a labour contract between an employer and one or more unions, and typically establishes terms regarding wage scales, working hours, training, health and safety, overtime, grievance mechanisms, and rights to participate in workplace or company affairs. Such agreements can also include 'productivity bargaining' in which workers agree to changes to working practices in return for higher pay or greater job security.
The union may negotiate with a single employer (who is typically representing a company's shareholders) or may negotiate with a group of businesses, depending on the country, to reach an industry-wide agreement. Collective bargaining consists of the process of negotiation between representatives of a union and employers (generally represented by management, or, in some countries such as Austria, Sweden, Belgium, and the Netherlands, by an employers' organization) in respect of the terms and conditions of employment of employees, such as wages, hours of work, working conditions, grievance procedures, and about the rights and responsibilities of trade unions. The parties often refer to the result of the negotiation as a collective bargaining agreement (CBA) or as a collective employment agreement (CEA).